A Project on

Consumer
Behavior
A Comparative
Study on Pizza Hut
and Dominos
By-
Rajalaxmi Prakash
Roll-011
PGDM 2012-14
IIBM Patna
History
Brothers Dan and Frank Carney founded Pizza Hut in
1958 after a friend suggested a pizza parlor would
make a successful business.
The siblings borrowed a mere $600 from their mother,
joined with partner John Bender, and purchased used
pizza making equipment to open their first restaurant.
One year after its founding, Pizza Huts first franchise
opened in Topeka, Kansas.
History
Ironically, another set of siblings, Tom and
James Monaghan, founded Dominos. They
purchased a pizza shop, DomiNicks, with a
$75 down payment and a $500 loan.
Not long after, James exchanged his half of
the business to Tom for a Volkswagen Beetle.
In 1965, the business was renamed Dominos
and the first franchise opened in 1967.

Facts and Figures
Founded: Wichita, KS
Year Founded: 1958
CEO: David C. Novak
HQ: Plano, TX
Number of U.S. Locations: 5,510
Annual Sales: $11.2B
Facebook Likes: 10,355,666
Facts and Figures
Founded: Ypsilanti, MI
Year Founded: 1960
CEO: J. Patrick Doyle
HQ: Ann Arbor Township, MI
Number of U.S. Locations: 4,513
Annual Sales: $6.9B
Facebook Likes: 8,229,670
Important Figures
The minimum financial requirement to open a
Pizza Hut is $700,000 in net worth and a minimum
of $350,000 in liquid assets.
The franchise fee is $25,000 for all franchisees. It
does not offer a minority or veteran discount on the
franchise fee, but it does offer a minority lending
assistance program which guarantees 25 percent of
the principal of the franchise business loan up to
$3,000,000.
The royalty fee is 6 percent and its advertising fee is
2.5 to 3 percent of gross sales.
Dominos does not have a minimal financial
requirement.
Its franchise fee is $25,000 for external franchisees
(those who have not worked as a General Manager
with Dominos) and up to a $25,000 for internal
franchisees (those who have worked as a General
Manager).
It offers franchise fee discounts to qualifying
internal minorities and veterans.
The royalty fee is 5.5 percent and its advertising fee
is 4 percent of the stores weekly royalty sales.

Important Figures
Training
Pizza Hut franchisees must complete an 8-10
week training program.
The training takes place at a certified training
restaurant located in Dallas, TX.
Pizza Hut covers the cost of the training, but the
franchisee is responsible for travel and lodging
expenses.
Training
External Dominos Pizza franchisees must
complete a comprehensive five day franchise
development program that covers store operations,
finance, marketing, and human resource issues.
They are also required to complete a four day Pizza
Prep School.
Financing Options
Although Pizza Hut does not provide
financing, it offers franchisees a list of financial
institutions that may be interested in lending to
Pizza Hut franchisees.
Pizza Hut is listed on the Small Business
Administrations Finance Registry should the
franchisee want to apply for a SBA loan.
Financing Options
Just like Pizza Hut, Dominos stays away from
offering direct or indirect financing to franchisees
and it is listed on the Small Business
Administrations Finance Registry.
Dominos also participates in the International
Franchise Association VetFran program, which helps
veterans obtain special finance rates and options.
Obligations/Restrictions
Pizza Hut recommends, but does not require,
the franchisee be involved in daily operations.
However each restaurant must be directly
supervised by a manager that has successfully
completed the Pizza Hut training program.
Obligations/Restrictions
Unlike Pizza Hut, Dominos does require that the
restaurant be under the management of the
franchisee or a controlling person who owns 51
percent or more of the franchise.
The franchisee (or controlling person) must be
dedicated to management of the store on a full
time basis.
Introduction
It entered India in June 1996.
By January 2001, Pizza Hut had 19 outlets across
India.
Presently it has 142 outlets in 32 cities in India.
Pizza Hut is one of the worlds largest pizza chains
with over 12,500 restaurants across 91 countries.
It employees more than 300,00 people.

Introduction
It entered India in 1996 through a franchise
agreement with VamBhartia Corp.
It had quite a speedy growth (1 outlet in 1996 and
101 in 2001).
Emphasis on home delivery
Today Dominos Pizza in India has grown into a
countrywide network of more than 300 stores with a
team of over 9000 people.
Dominos believes strongly in the strategy of think
local and act regional.

Success Factors
Offering value food
Moving beyond metros
Developing the local supply chain
Good ambience
Offering more than the international menu
Aggressive marketing and tie-ups with local and
popular brands.

Success Factors
Door step services.
Low pricing
Customer satisfaction
Great offers
Similarities

Both claimed to have original recipe of pizza

making

Both customized their offerings (though pizza hut

followed dominos )

Both concentrated on database marketing

Both introduced coupons, discounts and special

offers

Both used promotional campaigns involving

customers directly

Both wanted to establish themselves as a Brand

Differences (Late 1990s
early 2000s)
PIZZA
HUT
46%
DOMINO'
S
22%
OTHERS
32%
MARKET SHARE 1999
PIZZA
HUT
18%
DOMINO
'S
70%
OTHERS
12%
MARKET SHARE 2000
SWOT Analysis
Strength
Strong brand image
Unmatchable quality and variety
Hygiene
Excellent quality
Customer satisfaction

SWOT Analysis
Strength
More outlets even in smaller towns.
Less than 30 minutes home delivery.
Low price
Excellent offers
Customer satisfaction
Quick service at outlets

SWOT Analysis
Weakness
Inadequate advertisements.
Inadequacy of outlets.
High prices
Lack of parking facilities at outlets.

SWOT Analysis
Weakness
Lack of variety
Outlets lack space
Ambience not up to mark
No special option for birthday parties and
corporate lunches.

SWOT Analysis
Opportunity
With growing fast food market- scope for
expansion.
Introduce more offers.
SWOT Analysis
Opportunity
With growing fast food industry- scope for
expansion.
Introduce more variety
Bigger outlets
Introduce take away counters.
SWOT Analysis
Threat
No takeaway counters for pizzas.
Low price points of competitors.


SWOT Analysis
Threat
Better quality and variety of competitors.
No take away counters for pizzas

USP
Dining Experience

USP
30-minute Home Delivery Frame

Marketing Mix
Product
Recipe redefining as per the Indian taste.
Following Dominos in localization.
Opened 100% vegetarian restaurant.
Customization based on:-
Religion Jain
City specific Hyderabad (Halal meat)

Marketing Mix
Product
High Localization; even based on different regions.
Trendsetter in localization.


Marketing Mix
Price
Initially high price; as Pizza Hut offer Comeback
Value to our customer because of its USP Dining
Experience.

Marketing Mix
Price
Initially high price; as key ingredients sourced from
Australia and Spain.
Competition with Pizza Hut resulted in Price cuts,
discounts.

Marketing Mix
Place
Not much focused on supply chain; rather focused
on dining Experience

Marketing Mix
Place
Most robust and efficient Supply Chain resulted
into reduce costs.
Strategic set up of commissaries for raw material
supply.
Tie up with real estate consultant.
Targeting on non traditional outlets like Corporate
office, railway stations, cinema halls etc.

Marketing Mix
Promotion
Campaigns like Pan in your Name
Innovative Menu Pizza Pooch menu and Pizza
Pooch Birthday Package
One Rupee Pan deal
Barah nahin to Tera scheme

Marketing Mix
Promotion
Introduced Pizza mania
(Large Pizza Rs.129/-)
Discount coupons
Tie-up with Discovery Channel Co branding
Direct Mailing and Pizza Training Classes

Marketing Mix (Current
Scenario)
Product
Casual dining experience as well as fast delivery
(PHD & Restaurants)
Also offers a wide variety of pasta, salads, soups,
desserts, beverages, etc.
Less than 50% of sales is from pizzas
Marketing Mix (Current
Scenario)
Product
Pizza with promise of fast delivery
Offers mainly Pizza along with pasta, cakes and few
other side dishes
Mainly focused on pizza

Marketing Mix (Current
Scenario)
Price
Starts from lower end and goes up to an upper end
Caters to many price and taste segments
Lowest offering is at Rs. 44

Marketing Mix (Current
Scenario)
Price
Concentrates mostly on the lower to middle band
Caters mainly to price sensitive segment.
Lowest Offering is at Rs. 39

Marketing Mix (Current
Scenario)
Place
121 stores across 34 cities
Located at places where people visit more for
leisure (Casual Dining)
Opened PHD for catering to home delivery
Also encourages online ordering

Marketing Mix (Current
Scenario)
Place
500 stores across 110 cities
Conveniently located for fast delivery
Encourages online ordering


Marketing Mix (Current
Scenario)
Promotion
Coupons
Bundling
Offers
Encourages online ordering

Marketing Mix (Current
Scenario)
Promotion
Coupons
Bundling
Offers
Encourages online ordering


Positioning
Conversation
Memories
Laughter
Togetherness
Enhanced dine-in concept
Positioning
Great tasting Pizzas and sides
Superior quality
Exceptional guest care
Value for money offerings
A home delivery specialist capable of delivering pizzas
within 30 minutes or else FREE
Brand Tag Line Hungry Kya?
2008 - Khushiyon Ki Home Delivery A reflection of the
role Dominos plays in the lives of the consumers
2012 - Ye Hai Rishton Ka Time To take the engagement
with the consumers to the next level


A Healthy Restaurant
My Innovation
Sant Goyt
Health + Taste
Segmentation
Geographic-
Demographic-
Age-
Gender-
Psychographic
AIO
Activities working professionals
Interests Eating out with family, grabbing a quick meal
before work hours or in the lunch time
Opinions Broad-minded people

Targeting
People more conscious for their health
Mothers of young children
Vegetarian people
Also for infants and toddlers
Special emphasis on babies, adolescent girls,
pregnant women, senior people, people suffering
from certain chronic diseases like diabetes, heart
problems, etc.

Positioning
Healthy but tasty food
Fresh ingredients
Organic ingredients
Marketing Mix
Product
Fresh ingredients
Organic ingredients
Hormone- and antibiotic-free chicken, mutton, fish,
shrimp, and organic tofu
Whole-grain bread, fresh sandwiches and hearty,
healthy soups and salads
Baby food such as milk, porridge, cereal, etc.
Own greenhouse space for growing vegetables and
orchards for fruits


Marketing Mix
Product
Nutritional information right on the back of its tray
liners
Customized recipes
Ultra-healthy sandwiches
Low-cal soups
Low-fat milk or fruit juice instead of soda
Ambience - Funky but serene, Artful
Separate kitchens for vegetarian and non-
vegetarian cuisine
Play shop for kids


Marketing Mix
Price
Ranging from Rs 50 to Rs 1500
Regular sandwiches and eatables are low-priced
High prices for exotic cuisine, and recipes for the
extra-health conscious lot
High prices are justified because of the usage of
organic and fresh ingredients and on account of the
genuine care, concern and that extra mile covered
for individual customers.
Based on the objective of product quality

Marketing Mix
Place
Introductory outlets in the metro cities
Gradually, move on to the tier I and tier II cities
2-3 outlets in metros and tier I cities
1-2 outlets in tier II cities
Take home facility
Home delivery facility
Online order and delivery

Marketing Mix
Promotion
Reduced prices on combos
Discount coupons
Ads on TV, radio, social networking sites
Hoardings, billboards
Newspapers, pamphlets
Schemes like Happy Hours for mock tails
Discounts for the price-conscious lot on Wed
Free snackers, mock tails, juices, etc. in the
campaigns

A Glimpse into the Menu
Card
Sambar dal
A solid stew made with chickpeas, legumes, and a
variety of spices.
One serving includes approximately 50 calories, 2.6gms
carbohydrates, 15.0gms protein, and 1.8gms fat.
Tandoori chicken
Marinated in yogurt and seasoned in tandoori masala,
and a combination of various spices.
One entire leg piece includes approximately 260
calories, 13.0gms fat, 5.0gms carbohydrates and
30.5gms protein.

A Glimpse into the Menu
Card
Rajma
A North Indian dish made of red kidney beans in thick gravy
with lots of spices and usually served with rice and roti.
One serving of 114gms cup consists of approximately 120
calories and 5gms proteins.
Hara bhara kebab
A vegetarian crispy kebab, a recipe full of aromatic spices,
healthy ingredients and an marvelous taste.
Per serving includes approximately 73 calories and 2gms
protein.

A Glimpse into the Menu
Card
Arhar dal
A dish made with beans. The nutritional content of
one serving is approximately 53 calories, 1.2gms
fat, 8.0gms carbs, and 2.8gms protein.
Bhindi ki sabji
Tastes great with hot chapattis or parathas and
there you've got a terrific vegetarian meal.
Servings of 50gms consists of approximately 80
calories and 5gms protein.

A Glimpse into the Menu
Card
Sol kadhi
A pink-colored appetizer drink from made from the
Kokum fruit and Coconut Milk.
Also good for your stomach after a Hot and Spicy
meal. One glass consists of 138 calories.
Chickpea and spinach curry
Lots of fresh spinach brings the green color to this
chickpea dish, and curry livens up the flavor.
Full of fiber. Per serving consist of approximately
142 calories.

A Glimpse into the Menu
Card
Lobhia
A popular north-Indian dish, where the soaked and
cooked black-eyed beans are boiled in tangy tomato
gravy, with the right blend of spices.
One serving of medium bowl consists of approximately
198 calories.
Palak-da-Saag
A very famous and healthy Punjabi recipe usually served
with roti or naan.
Per servings includes approximately126.2 calories and
6.3gms proteins.

A Glimpse into the Menu
Card
Daliya
A very light and healthy option for breakfast.
An excellent source of fiber that helps to maintain
healthy digestive system.
Whole wheat daliya consist of approximately 85
calories per 170gms servings.
Aloo palak
Stuffed with mashed potatoes, mixed with finely
chopped spinach or any leafy green vegetables
One serving of 142gms consists of almost 100
calories and 3gms proteins

A Glimpse into the Menu
Card
Moong bhaji
Sprouted moong bhaji is a quick, easy and healthy dish.
The protein rich sprout is very health-friendly.
Per serving of moong bhaji includes approximately 125
calories and 4gms fats
Baigan bharta
A North Indian specialty of roasted brinjals, skinned
and made into a simple and exotic preparation.
Serving size of 100gms consists of approximately 102
calories and 5gms fat

A Glimpse into the Menu
Card
Red pumpkin bhaji
Tastes so good & is excellent with soft chapattis,
phulkas or with any Indian bread. It goes well with
rice too.
One serving includes approximately 151 calories
Kobi chi bhaji
A very famous dish in Maharashtrian meals, and can
be cooked in a variety of ways by adding tomato or
green peas.
One serving consists of approximately 65 calories
and 2.2gms protein

A Glimpse into the Menu
Card
Patrani machhi
Masala coated fish steamed in banana leaves.
One serving consists of approximately 290.3
calories and 13.6gms total fat
Chicken dhansak
This delicious and popular Parsi dish is made with
chicken. Dhansak is traditionally served with brown
rice and kachumbar salad.
Per serving includes approximately 505 calories

A Glimpse into the Menu
Card
Raita
A simple preparation made by adding fruits,
vegetables or any other thing to beaten curd.
One serving includes approximately 60 calories
Buttermilk
100 calories and 2grams per cup

SWOT Analysis
Strength
Healthy food

SWOT Analysis
Weakness
High-priced menu
Narrow target

SWOT Analysis
Opportunity
Untapped market
Growing percentage of health-conscious people

SWOT Analysis
Threat
Low-priced restaurants
Other established fast-food chains

Learning
Through the tagline Health + Taste and the brand
logo
Personality
The people with following personalities will be the
focus:-
People with busy lives
Outgoing people
Health-conscious people
People willing to try new things

Attitude Formation
A positive attitude formation towards the
restaurant can be done by:-
Consistently showing the ill effects of junk food,
high calorie diet, etc. in the long run through media
and personalized hand-outs
Justifying the high priced menu in accordance with
the fresh and expensive ingredients and special
treatment to customers especially people with
certain health issues or people with babies


Motivation
A campaign to spread awareness, contests, etc.
Celebrity endorsements
Play shop for kids along with staff to look after

Perception
There is a negative perception towards the food from
restaurants and eateries. Its believed that they cannot
be healthy as improper and unhealthy cooking oil,
meat, vegetables and other ingredients are used (which
is true more often than not).
This perception need to be changed.
It can be done by effective promotional campaigns,
accurate nutritional and hygienic information about the
food and by giving customers a visit to the kitchen and
storage areas.